RBI fines Union Bank, SBI for flouting norms

State Bank of India penalised Rs. 7 crore
The Reserve Bank of India (RBI) has penalised State Bank of India and Union Bank of India for violating certain regulatory guidelines.
SBI was fined Rs. 7 crore for non-compliance with the directions issued by the RBI on Income Recognition and Asset Classification (IRAC) norms, code of conduct for opening and operating current accounts and reporting of data on Central Repository of Information on Large Credits (CRILC), and fraud risk management and classification and reporting of frauds. RBI said the statutory inspection of the bank with reference to its financial position as on March 31, 2017 revealed that the lender had violated those norms. The central bank also imposed a Rs. 10-lakh fine on Union Bank for non-compliance with the directions on the cybersecurity framework in banks issued by the RBI. In 2016, the RBI carried out an examination of the cybersecurity framework after reports of generation of seven fraudulent messages worth $171 million through the SWIFT system of the bank.

Source : https://www.thehindu.com/todays-paper/tp-business/rbi-fines-union-bank-sbi-for-flouting-norms/article28460442.ece

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